Since launching in 2018, the team at Nada has been hard at work.
Initially, Dallas-based Nada raised around $800K from private and institutional investors to quickly garner traction for its all-in-one online solution that acts as an alternative to the traditional commission structure for selling a home.
With new services in the pipeline and revenue coming in, Nada was ready to raise more funding. That led to a campaign in June 2020 with Republic, an investment platform that allows early-stage startups to raise up to $1.07 million from anyone—friends, family, fans, and the general public—using regulation crowdfunding.
Republic brought its Cities program to Dallas last year as part of its mission to launch in high growth, up-and-coming cities that are working to level the playing field for entrepreneurs. Republic Cities Dallas aims to connect with the local startup community while highlighting the companies that are raising on Republic.
In just under a week, Nada raised 100 percent of its fundraising goal. By the following year, Nada had raised $1.8 million from 4,000 public equity investors on Republic.
According to Kingscrowd, this makes it the fourth highest public equity capital raise for a real estate company since it began tracking regulation crowdfunding deals in 2017.
To supplement its growth, which includes new partnerships and product releases, Co-Founder and CEO John Green knew he had to bring in more money. That led Nada to close a recent $2.5 million seed round from Global Millennial Capital, bringing its total equity to more than $3 million, Green told Dallas Innovates.
The premise behind the Dallas-based real estate startup mirrors its name: Sell your home online, pay nada.
Nada has integrated all services—realty, mortgage, insurance, escrow—into a single digital solution. So far they’ve launched Nada Services, a title and settlement business; Nada Loans, a mortgage brokerage; and Nada Insured, an insurance agency with co-brokerage agreements. That makes four business verticals under parent Nada Holdings.
According to Green, that means a real estate transaction is completely transformed into a full homeowner service relationship.
When a home is listed on Nada, the owner receives a full suite of real estate services for a $4,000 flat fee paid at close. They then get a full refund of that fee when they buy their next home with Nada. That’s where the payment of “nada” comes in.
Customers using Nada to buy their home are rewarded with up to $2,000 cash back in the form of closing cost credits that help lower the money needed to become a homeowner.
Nada is able to do that based on the team’s support structure and use of automation to streamline the home buying process. Costs are reduced, and traditional commission fees, which can sometimes be as high as 6 percent, are avoided. All flat-fees and services are listed up-front, and Nada is only paid if the home sale successfully closes.
“The Nada platform fuses human and machine intelligence to power a mobile-first, consumer experience from discovery to financing through to closing and owning of a home,” Green previously told Dallas Innovates. “We’re proud to be able to serve our community today and help folks unlock more of their equity through a low stress process.”
Newly introduced from the Nada suite of offerings is Homeshares, a way to trade fractions of your home equity in for cash.
Like retirement and savings, Nada believes that home equity is earned. Homeshares acts as a way to unlock earned equity—by trading it in for cash without debt—to make homeownership more flexible. It requires no monthly payments, and the unlocked equity funds can be used to pay off debt, renovate, invest, and more.
Next up for Nada is a new product dedicated to anyone interested in buying, selling, trading, financing, or investing in real estate. The program will come by way of a joint venture between Nada and Republic Real Estate, Republic’s real estate investment vertical.
More to come on that, Green says.
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